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(CBC)   Have you ever wished to stash away money in your own off-shore account to avoid taxes? Now you can with this interactive explanation of how it all works   (cbc.ca) divider line 33
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7795 clicks; posted to Main » on 04 Apr 2013 at 11:33 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-04-04 10:09:30 AM  
Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!
 
2013-04-04 10:40:12 AM  
Knowing how isn't very helpful without one little detail.

Having enough money to make it worth hiding.
 
2013-04-04 11:37:22 AM  
Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?
 
2013-04-04 11:37:59 AM  

UberDave: Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!


Disability compensation is where the real money resides.
 
2013-04-04 11:43:51 AM  
One of the worst Canadian tax avoiders was a Prime Minister, Paul Martin, who had his shipping empire set up in Barbados. His party had earlier set up a sweetheart tax haven agreement with Barbados "for the good of Canada."

The finance minister who set up the enhanced trade treaty with Barbados was also called Paul Martin, although I'm certain that was just a coincidence.
 
2013-04-04 11:44:27 AM  

pkellmey: UberDave: Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Disability compensation is where the real money resides.


I thought it was social security.  All those god damned entitled senior citizen parasites.
 
2013-04-04 11:47:42 AM  

hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?


Yes. Most start after they make a big deal on the market and then get nailed on tax. They take that legitimate money and put it in an haven and then re-invest it down there. It's also useful when you get a huge bonus you want to work with but don't want to pay tax on the gains.

Normal people in Canada can use their tax free savings account to get around taxes. No tax there, even when you take the money out.
 
2013-04-04 11:49:40 AM  

pkellmey: UberDave:

Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Disability compensation is where the real money resides.


Don't look at me: everybody who's known me for any length of time knows I'm worth every penny, and several re-evaluations over the years have also affirmed that fact.

Besides which, I use my benefits as they're intended, to feed and house myself in squalid seclusion so I don't offend Normals with my presence or get in their way. Y'all Farkers are lucky: in real life you can't click "Ignore this user" nor can I edit my presentation as carefully as I do here.

The kids want to pet my cute friendly dog but their parents don't want them to come within 20' of me. You can tell by their "OMG its a weirdo!" stare. Meanwhile pedophiles are being very helpful and likeable in their churches and Boy Scout troops. Stupid people are funny.
 
2013-04-04 11:52:05 AM  

hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?


You are also assuming that the money was above board and that they paid taxes on it.  Think AL Capone.
 
2013-04-04 11:53:17 AM  

hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?


I don't have "tons" of money but I have an off-shore account. It really handy to have a bank account in my wife's homeland. Works great for when we are visiting and it allows her to move money with bank fees.

Western Union takes like 10%!


See there are more then one reason to have an off-shore account
 
2013-04-04 11:58:19 AM  

hugram: so they already got taxed on it


Are you sure about that?



Link
Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda.
 
2013-04-04 12:10:59 PM  

The One True TheDavid: pkellmey: UberDave:

Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Disability compensation is where the real money resides.

Don't look at me: everybody who's known me for any length of time knows I'm worth every penny, and several re-evaluations over the years have also affirmed that fact.

Besides which, I use my benefits as they're intended, to feed and house myself in squalid seclusion so I don't offend Normals with my presence or get in their way. Y'all Farkers are lucky: in real life you can't click "Ignore this user" nor can I edit my presentation as carefully as I do here.

The kids want to pet my cute friendly dog but their parents don't want them to come within 20' of me. You can tell by their "OMG its a weirdo!" stare. Meanwhile pedophiles are being very helpful and likeable in their churches and Boy Scout troops. Stupid people are funny.


That sounds a lot like my life except I'm a pressure welder so I'm well camouflaged amongst all the other grumpy assholes that DON'T have severe adult ADHD and aspergers. Also, I find this is a great place to actually be myself. I'm don't feel the need to censor my words just in case I offend someone because there are one hell of a lot worse people than me here ;) . Also, why the hell does the CBC still exist? Haven't we all come to a census that it is a huge waste of our tax dollars?  Us being the middle class that actually pay taxes.
 
2013-04-04 12:18:51 PM  

hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?


IRS:  "You reported you made 1$ this year but your bank accounts show deposits in the millions"

It's all about tax evasion, from the grey corporate type to the outright illegal income type.  Businesses don't get a W2 with the taxes taken out, they file quarterly taxes and are required to have accounting to back up their claims.  At an individual level it's usually income from outright criminal enterprise.
 
2013-04-04 12:19:19 PM  
Well, I'm all ready; I have my fraudulent company set up in the Caymans with a bank account in Lichtenstein.  Now I just need to start funnelling my millions.

Hard part is finding enough relatives to kill so I get all their money.

/what do you mean it didn't set it up for me?  CBC I am dissapoint!
//hi Mr. Revenue Canada!
 
2013-04-04 12:21:27 PM  

Tr0mBoNe: hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?

Yes. Most start after they make a big deal on the market and then get nailed on tax. They take that legitimate money and put it in an haven and then re-invest it down there. It's also useful when you get a huge bonus you want to work with but don't want to pay tax on the gains.

Normal people in Canada can use their tax free savings account to get around taxes. No tax there, even when you take the money out.


Those have a yearly limit of $5,000.
I have a question for anyone who would know: would it be worth it to take $1M and put it into 200 TFSA's? The return on those is like what, 2%? So, you'd get $20,000 a year in tax free interest. Meh seems kinda dumb. I wonder if you'd get more from putting it all into one bank account.
I guess where it becomes worth it is if you had $10M, and put it into 2000 TFSA's. Then you'd be getting $200,000 a year tax free.

/now I just need $10 million dollars
 
2013-04-04 12:22:45 PM  
The 1% of entitled free loaders.
 
2013-04-04 12:25:23 PM  

The One True TheDavid: pkellmey: UberDave:

Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Disability compensation is where the real money resides.

Don't look at me: everybody who's known me for any length of time knows I'm worth every penny, and several re-evaluations over the years have also affirmed that fact.

Besides which, I use my benefits as they're intended, to feed and house myself in squalid seclusion so I don't offend Normals with my presence or get in their way. Y'all Farkers are lucky: in real life you can't click "Ignore this user" nor can I edit my presentation as carefully as I do here.

The kids want to pet my cute friendly dog but their parents don't want them to come within 20' of me. You can tell by their "OMG its a weirdo!" stare. Meanwhile pedophiles are being very helpful and likeable in their churches and Boy Scout troops. Stupid people are funny.


<B>pkellmey</B> has probably been listening to the same NPR series about the disability industry that I have. It's pretty interesting - although frankly I think talking about who "deserves" disability is totally the wrong conversation, so *shrug*.
 
2013-04-04 12:28:33 PM  

sure haven't: Tr0mBoNe: hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?

Yes. Most start after they make a big deal on the market and then get nailed on tax. They take that legitimate money and put it in an haven and then re-invest it down there. It's also useful when you get a huge bonus you want to work with but don't want to pay tax on the gains.

Normal people in Canada can use their tax free savings account to get around taxes. No tax there, even when you take the money out.

Those have a yearly limit of $5,000.
I have a question for anyone who would know: would it be worth it to take $1M and put it into 200 TFSA's? The return on those is like what, 2%? So, you'd get $20,000 a year in tax free interest. Meh seems kinda dumb. I wonder if you'd get more from putting it all into one bank account.
I guess where it becomes worth it is if you had $10M, and put it into 2000 TFSA's. Then you'd be getting $200,000 a year tax free.

/now I just need $10 million dollars


You can put the cash in your TSFA on the stock market or in mutual funds. 2% would be a pretty weak return.
 
2013-04-04 12:29:19 PM  

hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?


Yes, that's exactly it. And the interactive in TFA (which was quite good) actually says that near the end.
 
2013-04-04 12:30:35 PM  

UberDave: Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!


Oh, decisions decisions! Clearly we can only address one of these problems. It is simply beyond the capacity of government to try to deal with tax AND welfare cheats.
 
2013-04-04 12:50:10 PM  
People at the top are dickwagons. That is all.
 
2013-04-04 12:51:12 PM  
There was a really really good episode on Bill Moyers recently where Sheila Bair (The TARP bailout admin) describes the circle jerk of washington, and how the banks have engineered regulatory capture through lobbying.    Banks, and by proxy their boards and CEOs, have rigged the game.  You (yes I'm looking at you, poors) CANNOT win this game. Capitalism has crucified the American Dream of progression through hard work.  The kind of people with sheltered Caymen Islands, etc. accounts don't even see the general population as people, rather they see the rest of us as sheep to be fleeced.  It's despicable, and if we allow this to continue, we deserve what we get.

I do believe that this stuff goes in cycles though, and that there will come a day fairly soon where wealth makes folks a target for the masses rather than something to be admired/sought after.  Still, you have to ask yourself, what kind of people are these who can both cheat their neighbors and complain about "entitlements" for the poor at the same time?  Seriously, what right does a guy paying next to no taxes have to complain about anything those taxes (that the rest of us had to pay) are spent on?   And yet, these are the loudest, most obnoxious people in America for puking out their political opinions on all the rest of us.
 
2013-04-04 01:11:19 PM  

Debeo Summa Credo: the interactive in TFA (which was quite good)


Good find Subs +1
 
2013-04-04 01:23:43 PM  
Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Oh, decisions decisions! Clearly we can only address one of these problems. It is simply beyond the capacity of government to try to deal with tax AND welfare cheats.


Clearly it is beyond the capacity of the US government to deal with *either* as anything more than a political platform. Because solving the problem means the problem goes away and you don't have a political platform to roust people to be your standard bearers anymore.
 
2013-04-04 01:29:51 PM  
Don't look at that, poor people, look over here!
Gays!  Mexicans!  Mooslims!
 
2013-04-04 01:56:04 PM  

Quinzy: hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?

You are also assuming that the money was above board and that they paid taxes on it.  Think AL Capone.


Good point... I was making the assumption (giving them the benefit of the doubt) that they paid taxes on the initial money making phase.

generallyso: hugram: so they already got taxed on it

Are you sure about that?

Link
Google Inc. cut its taxes by $3.1 billion in the last three years using a technique that moves most of its foreign profits through Ireland and the Netherlands to Bermuda.


Yea... again, good point. I was making the assumption they already paid taxes on it. Thanks for the link.
 
2013-04-04 01:57:03 PM  
For those of you wondering where the money comes from, and why aren't the taxes already paid, consider this scenario:  Company A orders product from me.  I don't sell it to them; instead my paper company in St. Maartin does.  Its parent company is in Barbados, and its bank account is in the Caymans.  Olde school: I make the product, new style, I have it made in China.  Either way, the money comes from that bank account in The Caymans.  If I make it here at home, I have the St. Maartin company sub it to me, and I make it for barely more than cost, reporting 1-2% profit.  The rest of the profit goes to that bank account in The Caymans.  Almost all taxes are avoided all round.

Then I invest the money from The Caymans in American stocks, have the profits still going out of the country, and in 15-20 years, I have a mountain of money waiting on me.  Meanwhile I'm telling my employees back home we have to cut costs / no raises because of razor-thin profits or no profits at all..  All those pesky employees, and taxpayer fools are getting screwed only because they aren't as smart and gifted as me.
 
2013-04-04 02:13:30 PM  
Never fails to amuse me when the Americans here assume this is about their country and then post under that erroneous assumption. Narcissist much?
 
2013-04-04 02:14:22 PM  

Debeo Summa Credo: UberDave: Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Oh, decisions decisions! Clearly we can only address one of these problems. It is simply beyond the capacity of government to try to deal with tax AND welfare cheats.


Not what I was joking about but if it makes you feel better to assume I'm too dumb to understand the government can walk and chew gum at the same time and sarcastically call me out on that then go with that...
 
2013-04-04 02:29:10 PM  

hugram: Since I don't have tons and tons of money, I don't need an off-shore account and I don't understand the benefit of putting it off-shore. They already made the money, so they already got taxed on it (either by capital gains or income tax).

Are they trying to avoid paying taxes on interest gains?


Actually if you roll it right you can bypass those capital gains by saying you are re-investing the money and not taking profit now. then you "invest" in your offshore company and use the $ for whatever you want. no taxes paid.
 
2013-04-04 02:46:52 PM  

UberDave: Debeo Summa Credo: UberDave: Why should we care about this when some lazy do-nothing is cheating the welfare system so they can buy pot and booze?!

Oh, decisions decisions! Clearly we can only address one of these problems. It is simply beyond the capacity of government to try to deal with tax AND welfare cheats.

Not what I was joking about but if it makes you feel better to assume I'm too dumb to understand the government can walk and chew gum at the same time and sarcastically call me out on that then go with that...


If I missed some inside joke that I'm not privy to, I apologize.

It seemed you were implying that people who complain about welfare cheats should instead complain about tax cheats and into worry about welfare fraud.
 
2013-04-04 03:42:33 PM  
Actually, the question isn't as sarcastic as one thinks. If you were to rank the benefits gained by busting large scale tax cheats against those of busting individual welfare user fraud, even taking all of the probable welfare abuse in aggregate, it becomes a foolish question on where resources should be focused. Corporate tax cheat reform on even a small scale would recover sums of money vastly larger then any that individual welfare fraud could hope to drain.

Although again, yes the government is capable of doing more then one reform at once.

/Note I am careful not to lump corporate welfare fraud in with individual welfare fraud, they are two different fish on scale and corporate welfare fraud is much more akin with tax evasion then what people envision when talking about welfare fraud.
 
2013-04-04 04:30:02 PM  
Welfare fraud is vastly overestimated by the general public.  The actual numbers are less than 5% of folks on welfare, and of those many are caught.

When it comes to tax evasion the % of people defrauding the country is not only much higher, the amount of money involved is exponentially higher and few are caught.

Time to get out the pichforks!
 
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